On July 14, 2026, the European Commission published its report reviewing the Foreign Subsidies Regulation’s (FSR) first three years of operation.[1] The Commission found the regime “fit for purpose” and an “effective tool” to tackle distortions from foreign subsidies in the EU single market. However, it also recognized broad concerns about the regime’s efficiency and the disproportionate cost of compliance.
On June 30, 2026, the European Commission published its Staff Working Document (the SWD)[1] accompanying the guidelines on its enforcement of the Foreign Subsidies Regulation (FSR) (the Guidelines)[2] published on January 9, 2026.[3] The SWD sets out the feedback received through various rounds of consultation, and explains how this feedback was taken into account in the final Guidelines. This alert memorandum reviews the key stakeholder-driven changes reflected in the final Guidelines and their implications for the Commission’s future enforcement practice.
On January 9, 2026, the European Commission published long-awaited guidelines on its enforcement of the Foreign Subsidies Regulation (“FSR”) (the “Guidelines”).[1] In addition to delineating the FSR’s jurisdictional scope, the Guidelines clarify three key concepts: (1) when a foreign subsidy distorts competition; (2) how a distortion’s negative and positive effects are balanced against each other (the “Balancing Test”); and (3) when the Commission may use its so-called “call-in powers” to request the prior notification of transactions and public bids that fall below the mandatory FSR thresholds.
On December 18, 2025, the Court of Justice delivered its preliminary ruling in a case concerning an appeal by Lukoil against a Bulgarian competition authority decision which had imposed a fine on Lukoil for its refusal to grant access to third parties to essential infrastructure (fuel storage facilities, port terminals, and pipeline networks), originally constructed with public funds and subsequently privatized by Lukoil.[1]
In August 2025, the European Commission launched a review of the Foreign Subsidies Regulation (FSR).
On February 26, 2025 the Düsseldorf Court of Appeal (“DCA”) dismissed a broad application of Germany’s transaction value threshold.[1] The threshold introduced in 2017 is a “safety net” for exceptional cases, not an additional standard aimed to lower the threshold for merger review. Companies in mature markets with established revenue streams face reduced risk of mandatory filings, even for high-value acquisitions.
On 27 May 2024, the German Federal Cartel Office (“FCO”) gave the green light for Johnson & Johnson’s (“J&J”) 13.1 billion US dollar acquisition of Shockwave Medical (“Shockwave”).[1] The decision follows an in-depth investigation into the acquisition’s potential impact on competition and innovation, particularly in the burgeoning field of cardiovascular disease treatment, one of the fastest‑growing global med-tech markets.